by Kirk Briden | Aug 25, 2023 | CECL
When you see a negative forward-looking adjustment in the CECL model, it means the projected loss rate in the near-term future for that pool is lower than the average historical loss rate. This is not unusual, especially when the lookback period goes back to the...
by Kirk Briden | Jun 7, 2022 | CECL
One of the reasons that CECL was created by FASB was to force banks to be quicker to adapt to changing market conditions. They wanted banks to be faster to increase their reserves in worsening credit cycles and lower their reserves during improving credit cycles. ...
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